Bernie Madoff is responsible for the world's largest Ponzi scheme. Madoff pulled the stunt off as the head of the Bernard L Madoff Investment Securities. A Ponzi scheme is where Madoff would promise employers huge payouts if they invested in him, but then Madoff would back out at the right moment and take all the money with him. The scheme was going well until the Great Recession during the late 2000s exposed Madoff. The Great Recession proved to his employers that he didn't actually have all the money he promised people he had. Madoff is currently serving the 10th year of his 150-year sentence.
Madoff began his career as a penny stock trader which he paid for by working as a lifeguard and a sprinkler installer. From there, Madoff receiver a 50K loan from his father-in-law and began his business of Bernard L Madoff Investment Security. His firm functioned as a third-market provider such that he could bypass exchange specialist firms by directly executing ordering over the counter. Madoff also had government connections because his parents served as leaders of the Securities Industry and Financial Markets Association. The SIFMA served as the primary securities industry organization. Madoff also funded a lot of federal candidates and in return received got partially reimbursed for his support.
3 comments:
Very descriptive post. It's crazy how schemes like this can be pulled off when the economy just keeps on growing.
It's incredible how long Madoff went without being caught. I'm surprised investors weren't keeping track of earnings and simply trusting his word that there were profits being made. Without any actual result, it's surprising he was able to accumulate so many investors as well
I'm very surprised that this scheme was able to run for so long without anybody speaking up or the system failing. I also think that the victims of this scheme deserved some type of compensation from him.
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